Nigeria will pay an interest of 11.85 percent per annum on the $3.3 billion \u201cpre-export finance facility\u201d (PxF) facilitated by the Nigerian National Petroleum Company (NNPC) Ltd and arranged by Afrexim Bank. A similar cocoa-backed $800 million facility arranged\u00a0for Ghana by its cocoa marketing board attracts an interest of 8 percent per annum.<\/p>\n
Bilateral lenders, such as the International Monetary Fund (IMF), would typically charge 1-3 percent with a longer tenor. In the details seen by TheCable, Nigeria pledged a total of 164.25 million barrels of crude oil \u2014 at 90,000 barrels per day \u2014 starting from 2024 to repay the loan through Project Gazelle Funding Ltd, an \u201corphan\u201d special purpose vehicle (SPV) incorporated in Bahamas for the PxF. Effectively, the NNPC has pledged 38.58 percent of five years\u2019 worth of tax and royalty oil to secure the loan.<\/p>\n
The national oil company announced in August 2023 that the PxF was to support the federal government \u201cin its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market\u201d, describing it as \u201ca relief for the naira\u201d. It called the facility \u201ccrude oil repayment\u201d with an upfront cash loan \u201cagainst proceeds from a limited amount of future crude oil production\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nigeria will pay an interest of 11.85 percent per annum on the $3.3 billion \u201cpre-export finance facility\u201d (PxF) facilitated by the Nigerian National Petroleum Company (NNPC) Ltd and arranged by Afrexim Bank. A similar cocoa-backed $800 million facility arranged\u00a0for Ghana by its cocoa marketing board attracts an interest of 8 percent per annum. Bilateral lenders, […]<\/p>\n","protected":false},"author":14,"featured_media":13914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[],"class_list":["post-13913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/13913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=13913"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/13913\/revisions"}],"predecessor-version":[{"id":13915,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/13913\/revisions\/13915"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/13914"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=13913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=13913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=13913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}